One of the first questions you face when joining a New York City early intervention agency is whether you'll work as a 1099 independent contractor or a W-2 employee. The answer affects your taxes, your benefits, your hourly effective rate, and how much administrative work you're responsible for. Most NYC EI agencies default to 1099. A handful offer W-2 or a choice between the two. Here's what you actually need to know.
What 1099 means in NYC early intervention
As a 1099 contractor, you are legally self-employed. The agency does not withhold taxes from your payments. You receive the full per-session rate negotiated with the agency, and you are responsible for paying federal income tax, New York State income tax, and self-employment tax (which covers Social Security and Medicare) quarterly.
Self-employment tax alone is 15.3% on the first $160,200 of net self-employment income in 2026. On top of federal and state income taxes, an NYC EI therapist earning $65,000 gross on a 1099 basis might pay $18,000 to $22,000 in total taxes, depending on deductions, leaving roughly $43,000 to $47,000 net.
What W-2 means in NYC early intervention
As a W-2 employee, the agency withholds income taxes, Social Security, and Medicare from each paycheck. You receive a smaller gross payment per session, but you don't file quarterly estimated taxes, and you may receive benefits including health insurance, paid time off, and retirement contributions.
TheraCare is one of the few NYC EI agencies that offers a W-2 option. Per-session rates for W-2 positions are typically $8 to $15 lower than 1099 rates at the same agency, reflecting the employer's payroll tax burden. The math only works in your favor if the benefits offset the rate difference.
The real comparison: after-tax income
Assume a licensed SLP working 18 sessions per week, 46 billable weeks per year:
W-2 with good health insurance can come close to matching 1099 net income, especially if you would otherwise pay $400 to $600 per month for an ACA marketplace plan. Without benefits, 1099 almost always wins on income.
Tax advantages of 1099
As a self-employed contractor, you can deduct legitimate business expenses from your taxable income before calculating self-employment tax. NYC EI therapists with significant mileage, home office use, and continuing education expenses can meaningfully reduce their tax burden.
Common deductible expenses for NYC EI therapists:
- Mileage: The 2026 IRS standard mileage rate is 70 cents per mile for business travel. If you drive 8,000 business miles per year between cases, that's $5,600 in deductions.
- Transit costs: Subway and bus fares traveling between client homes are deductible.
- Therapy materials: Books, toys, apps, and assessment tools used with clients.
- Home office: If you complete notes and billing from a dedicated workspace at home, a portion of your rent and utilities may be deductible.
- Continuing education: CEUs, conferences, professional memberships, and licensing fees.
- Health insurance premiums: Self-employed individuals can deduct 100% of health insurance premiums paid for themselves and their families.
Quarterly estimated taxes: what you actually owe and when
As a 1099 contractor, you must pay estimated taxes four times per year. For 2026, the due dates are April 15, June 16, September 15, and January 15, 2027. Underpaying can result in an IRS penalty.
A safe harbor approach: pay at least 100% of your prior year's total tax liability in estimated payments, and you will avoid penalties regardless of what you earn this year. Most NYC EI therapists set aside 28 to 32% of every agency payment into a separate savings account designated for taxes.
Which NYC EI agencies offer W-2
Most NYC early intervention agencies operate 1099-only. TheraCare is the most well-known agency to offer a W-2 employment option. A small number of hospital-affiliated EI programs also hire therapists as employees. When comparing agencies, always ask specifically about the employment structure and what, if any, benefits are included with W-2 status before making a decision purely on per-session rate.